When working with buyers, it can be tough to truly understand how to navigate the real estate market here in San Diego, because it is nothing like the rest of the nation. See below to get a better understanding of the median sales price to buy a home by state, as of December 2024, according to Visual Capitalists. It is not only the most expensive in California, but with continued demand, and limited supply, the ‘sunshine tax’ isn’t forecasted to go down any time soon.

What does this mean for buyers?

In the recent months, we have certainly seen an adjustment to the market, where it isn’t just a full on sellers playground. There are still plenty of properties that reach multiple offers and sell over ask, but in some cases, homes are sitting for 30 plus days before ultimately doing a price reduction. Thus, if you’re looking to buy, I advise my buyers to become as competitive as it feels good to them on terms, for example: Get fully approved upfront, remove their appraisal contingency, offer a quick close, a short inspection contingency, etc. Then, going in before a seller does a price reduction, so you’re not having to deal with all the additional competition. This is where deals can be made that serve both buyers and sellers.

Something to note, is even if the market has softened, if you plan to live in your home for 5 to 7 years (which I generally advise to my clients), you will likely receive an upside as overall demand continues to grow, and the shortage of supply remains. Keep this in mind while you’re negotiating price and other terms.

What does this mean for sellers?

Your Go To Market Strategy Matters
Just like anything, you get out of selling what you put into it. My first recommendation would be to partner with a smart and savvy realtor (reply to this email to get started!), and begin by having them come to your house and scope out the landscape of all it offers, and in addition, allow them to provide suggestions in order to appeal to the most buyers possible. This is where removing clutter, personal belongings, deep cleaning, fresh paint, and staging can do wonders. Majority of buyers aren't able to see themselves in a home, unless it is presented correctly, and the more buyers your home appeals to, the more demand, and the more leverage you have as a seller. This can take a few weeks of preparation, but the magic truly comes together through the listing photos. Since most buyers begin their search online, you want to make sure that your photos make an impact, and by preparing in advance by the suggestions noted above, it will ensure success.
NOTE: In some cases, this strategy isn't necessary, but after a walkthrough of your home, your agent will be able to advise. Reasons being, 1. you have great taste and your home is already in perfect listing condition, or 2. your home is in need of a lot of TLC, and would appeal to an investor or a client looking to remodel. While removing all clutter and cleaning it out is always beneficial, spending dollars to make improvements that are likely to go, doesn't necessarily pan out in the long run.

Your Pricing Strategy is Crucial
As a seller, it is likely important to you that you get the highest price possible on the sale of your home, so your initial instinct might be to price it high, in order to leave room to negotiate. Unfortunately, this theory is not accurate, and can lead to you having to do multiple price reductions. This approach ultimately allows the buyer to gain all the leverage, as the demand will just not be there if you don't price appropriately. On the other hand, if you price at or even just slightly below market, you'll see the interest from out the gate, and if there are multiple offers, you then get to decide the right buyer for you, and often negotiate favorable terms beyond price, for example: a lease back from the buyer at the close so you have time to move, removal of certain contingencies, and quick closes. I have seen this countless times, not only with my own listings, but for so many in La Jolla. Trust your agent on this. If you're looking to sell in this market, pricing matters.

If you're thinking of buying or selling in the near future, and wondering what the process would like like, connect with me and we can setup a time to connect and talk through the best path forward that will support your own personal goals.

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